Canadian economy shrinks 0.1% in October

Canada’s national economy made a step backwards to the tune of 0.1 percent, as real gross domestic product shrank for the first time in eight months.
Canada’s national economy made a step backwards to the tune of 0.1 percent, as real gross domestic product shrank for the first time in eight months.

Canada’s national economy made a step backwards to the tune of a tenth of a percent in October, as real gross domestic product shrank for the first time in eight months.

According to figures by Statistics Canada, several sectors made marginal declines, with manufacturing down for the fourth time in five months dropping by 1.4 percent, and transportation equipment manufacturing slipping at a hefty 2.5 percent.

The slide back is contrary to what many economists had expected, as projections had Canada’s economy holding steady for the month, according to data given to CBC by financial markets data firm Refinitiv.

Economists had projected a flat GDP report for October compared with September, according to financial markets data firm Refinitiv. Experts point to United Auto Worker strikes in the U.S. causing Canadian troubles.

According to StatsCan: Canada’s economy grew 0.1% in August; the GM strike hit Canadian manufacturing sales, as October retail trade declined 1.1 percent, making it the largest decline in three years. Wholesale trade also declined one percent.  Not all industries were at losses, though, as oil production increased by 0.1 percent and real estate gained 0.7 percent.

Canada also lost 1,800 jobs in October. But far worse, the country lost a whopping 71,000 jobs in November, the single biggest monthly job loss since the Great Recession of 2008; Alberta and B.C. were the worst hit in the latest job losses.